1.Pampers Marketng Analytics

2. Introduction (Industry)Due to ongoing urbanization the consumer has become more aware of nappies and diapers and this awareness has been boosted by strong advertising and widening distribution.More people are switching from cloth alternatives to nappies and diapers because of the belief that these products offer greater hygiene and comfort for their babies and greater convenience for themselves.Pakistans Continued population growth with the number of babies and toddlers remaining high as well as the increase in literacy rate offers a large potential consumer base for diapers with sales growth likely to remain strong which has been reflected in the average industry growth of 14% per annum.4 3. Introduction (Industry) As far as industry competition is concerned, pampers is the market leader although rivalry has increased and price wars are taking place.Z&J and Pan Industry the main competitors of pampers have been playing on price thus capturing pampers market share.Pampers has not actively engaged in these price wars as yet but instead has launched new features and packaging although pampers prices do show minor fluctuations from time to time.5 4. Introduction (P&G) Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991Their goal was to become the finest global consumer goods company operating locally in Pakistan.P&G has always believed in the potential Pakistan has as a country. Since its inception in Pakistan P&G has invested significantly in Pakistan6 5. Famous P&G Products in Pakistan7 6. Introduction (Pampers) In August 2000, Procter & Gamble launched Pampers in Pakistan.Procter & Gamble dominated sales of nappies and diapers by value share of 62.8% and a volume share of 58.4% with its Pampers brand in 2010.Many consumers use the word Pampers to refer to any brand of diapers which is inevitably boosting sales of the brand in outlets.P&G faces competition from Z&J and PAN industry which produces disposable diapers.8 7. INDUSTRY ANALYSIS VOLUME (In Million units)Market Segment20072008Growth %2009Growth %2010Growth %Diapers 72.7%71.4%22628526.1270-5.2250-7.422628526.1270-5.2250-7.4769626.368-29.28322.05BABY MASTER455726.739-31.64925.64HAPI NAPI293624.126-27.83119.2BABY CARE23503030PAN INDUSTRY232926.16-79.31183.3232926.16-79.31183.331139928.34123.34283.74PROCTER&GAMBLE PAMPERS ZJDIAPY Total Market65.6%58.4%Based on P&G's official factsheets and interview findings* *(Assumptions are made on the basis of factsheet)9 8. Forecasted Sales (Volume)FORECASTED SALES - VOLUME (In Million units)Market Segment20112012Growth %2013Growth %2014Growth %Diapers 61.2%64.5%2993592041014.246012.22993592041014.246012.21001151513719.115412.4BABY MASTER596815.258119.119011.11HAPI NAPI374316.215220.95913.46BABY CARE44040525PAN INDUSTRY3036204113.94612.193036204113.94612.1948855613.9363414.0272314.03PROCTER&GAMBLE PAMPERS ZJDIAPY Total Market64.6%63.6%*Pamper's 2011 & 2012 forecasts were taken from official source and 2013 & 2014 forecasts are calculated on the basis of previous years growth *(Assumptions are made on the basis of factsheets)10 9. Forecasted Volume Sales AnalysisOverall industry is growing and the reason for this is that number of children along with the awareness to use diapers is increasing in people.P&G is coming up with new SKUs and also decreasing their prices, in order to win price sensitive customers or butterflies.Butterflies made a 20% share, which is very valuable to Pampers because these are those people who want to buy good quality of Pampers but just dont find enough value to spend so much.11 10. INDUSTRY ANALYSIS:VALUE (In Million PKR)Market Segment20072008Growth %2009Growth %2010Growth %Diapers 73.9%74.1%2730343025.635002.13270-6.572730343025.635002.13270-6.5778298225.69991.8937-6.2BABY MASTER482607266181.8578-6.4HAPI NAPI27734725.33531.7328-7.1BABY CARE232821.72803110.7PAN INDUSTRY252315253201.6297-7.1252315253201.6297-7.13695462925.350438.952073.25PROCTER&GAMBLE PAMPERS ZJDIAPY Total Market69.4%62.8%Based on P&G's official factsheets and interview findings* *(Assumptions are made on the basis of factsheet)12 11. Forecasted Value Sales FORECASTED - VALUE (In Million PKR)Market Segment20112012Growth %2013Growth %2014Growth %Diapers 65.4%69.8%3832460320525814.23590012.23832460320525814.23590012.2980108010.2126517.1143013.04BABY MASTER60166310.378418.2588512.88HAPI NAPI3483737.143917.6949813.43BABY CARE314441.942-4.544711.9PAN INDUSTRY35142220.248214.2153410.7835142220.248214.2153410.785858659012.49741412.5834112.5PROCTER&GAMBLE PAMPERS ZJDIAPY Total Market70.9%70.7%*Pamper's 2011 & 2012 forecasts were taken from official source and 2013 & 2014 forecasts are calculated on the basis of previous years growth *(Assumptions are made on the basis of factsheets)13 12. Forecasted Value Sales AnalysisThe base for the basic customers is increasing continuously.Pampers is catering to price sensitive segment, by all these measures the value of pampers share is continuously increasing.Basic customers are those customers who are not price sensitive and wait for new innovative products of pampers.The other big reason for increasing value of overall market is that overall the industry is growing, more babies are being born every day and more and more people are getting aware of the need to use disposable diapers instead of towel napkins.14 13. 20072008Growth %2009Growth %201072.6771.43-0.17%65.53-8.30%58.41(%)2262850.26%270-5.26%250(In Million Units)3113990.29%4123.25%428(In Million Units)Unit Market Share (%) =Unit Sales (#) =Total Industry Unit Sales (#) =*(Estimations are based on official fact sheet and AC Nielsens Retail Audit data) 15 14. CUSTOMER PERSPECTIVE METRICS UNIT MARKET SHARE1.Pampers increased the price of its products in 2009, while other brands didnt follow this trend. So price sensitive section left pampers.2.ZJ introduced its brand named happi nappy and baby care which took away the unit sales from pampers.3.These two brands of ZJ were playing on price so the price sensitive segment left pampers16 15. REVENUE MARKET SHARE20072008Growth %2009Growth %201073.8874.100.003%69.40-6.34%62.80(%)Sales Revenue (#) =2730343025.64%35002.04%3270(In Million PKR)Total Sales Revenue (#) =3695462925.30%50438.94%5207(In Million PKR)Revenue Market Share (%) =*(Estimations are based on official fact sheet and AC Nielsens Retail Audit data) 17 16. 20092010Volume3.97%3.01%Value3.50%3.48% The biggest competitor of pampers is ZJ. In terms of volumes then relatively pampers has lost a lot of volumes to ZJ but in terms of value, pampers has just lost .02% to its competitor. Pamper has maintained its position as a market leader.*(Estimations are based on official fact sheet and AC Nielsens Retail Audit data) 18 17. Market and Brand Penetration(%) Market penetration15Brand penetration8.74Penetration share58.31 Market penetration is 15% while in this market brand penetration of pampers is 8.47%. So penetration share of pampers is 58.31% which is very good showing that pampers is dominating the market of diapers. As market penetration is greater than brand penetration so we can suggest for pampers that they should increase sales by acquiring existing category customers from their customers*(Estimations are based on official fact sheet and AC Nielsens Retail Audit data and population data was collected from www.statpak.gov.pk)19 18. SHARE OF REQUIREMENT(%)Unit Share of Requirement2009 97.43%2010 96.60%Heavy Usage Index(Unit)=1.151.04Revenue Share of Requirement97.84%97.12%Heavy Usage Index(Revenue)=1.221.11 As heavy usage index (unit) is greater than 1 it means that average users are buying more of pampers brand then average user buying other brands in diapers category. 96.60% people in units will be buying pampersmean that out of 100, 96.60% of people are going for pamper brand. This shows that pamper brand is doing very well in the diaper industry.*(Estimations are based on interview findings) 20 19. CAGR(2007-10) =2.56%2008 Year-on-Year Growth2009201026.10%-5.20%-7.40% Year-on-year growth is decreasing while CAGR is positive because the shares are decreasing in volumes but increasing in values, as P&G are selling their products in higher prices.*(Estimations are based on official fact sheet and AC Nielsens Retail Audit data) 21 20. 2009 BDI (Karachi) BDI (Multan) CDI (Karachi) CDI (Multan)20101.291.662.613.682.122.432.372.97 Talking about Multan, we can clearly see that CDI < BDI 2.97